What Technical Indicators Say about HPE



Shareholder returns and stock trends

So far in this series, we’ve discussed Hewlett Packard Enterprise’s (HPE) recent acquisition and industry analysts’ outlook on the company’s stock. Now let’s have a look at the technical indicators investors and traders look at to make market entry and exit decisions.

As of May 28, HPE stock has risen ~6% in the trailing-12-month period. However, in the trailing-one-month period, it has fallen ~9%.

In comparison, VMware (VMW) stock has been on an upward trajectory and has generated a return of ~41% in the last year. Cisco Systems (CSCO) has followed the same trend, generating a positive return of ~36.5% in the same period.

HPE’s moving averages and MACD

On May 28, HPE was trading at $15.52. The stock was trading 9% below its 20-day, 50-day, and 100-day moving averages of $17.

HPE’s 14-day MACD (moving average convergence divergence) of -0.06 shows a downward trading trend, as the figure is negative. MACD, a measure that was developed by Gerald Appel in the 1970s, is an important technical indicator that refers to the difference between a stock’s short-term and long-term moving averages. It’s helpful to use when gauging trends in a stock’s movements.

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